Update on Apprenticeship Levy reforms

From April, employers will pay an extra 0.5% of their payroll above £3m into their levy pot. It is expected this will generate £2.5bn per year for England by 2019/20 and providers will access this pot via a new Digital Apprenticeship System.

New! A 90% subsidy when the employer levy pot is empty. If a levy paying employer has no levy pot, or it runs out, the Skills Funding Agency are paying 90% of the negotiated rate on condition the employer has paid 10% in cash first to the provider

New! A new Funding system comes into place from May 2017. The cost will be spread over the lifetime of the apprenticeship. Skills Funding Agency will hold back 20% of the total cost, to be paid on completion of the apprenticeship. (note: completion, previously this was achievement)

New! Previously, digital funds expired after 18 months. Now this policy has been revised and the period is 24 months

New! Now and in the future, you can train any individual to undertake an apprenticeship at a higher level than a qualification they already hold. PLUS From May 2017, an individual can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills.

Timetable:

December

Further employer guidance from HMRC on how to calculate and pay the apprenticeship levy

January

Employers to register on the digital apprenticeship service

April

Levy paid

May

Service live • Make levy commitments to 2020 • All employers to use the service

If you would like further updates, and help with your apprenticeships, please contact us: email: sales@aldltd.co.uk or call: 0800 988 2155